Noone is talking about this problem yet!!! Ouch!

What problem could be left in the Real Estate industry one must ask? What about payment option payments or negative am loans? That's right...noone has seen those reset yet. But the day is coming soon! Remember the appreciation so pay less than interest and it's applied to principle? That is the next big bust.

Luckily this wasn't pushed nearly as much as the ARM deals here in Panama City Beach Condo market..but it did happen none the less. Read below for more specifics, but it's kindof interesting and could be very dangerous for lenders!

Fitch Predicts Higher Rates Leading to More Defaults Because so many holders of pay-option loans have elected to make only minimum monthly payments in the last 24 months, credit rating service Fitch Ratings predicted Tuesday that a larger than expected group of home loans will reset in 2009 and 2010.Pay-option loans, also known as option adjustable-rate mortgages, let borrowers make a lower payment but can result in the unpaid portion being added to the principal balance.The firm expects that $29 billion in loans will be recast to higher monthly payments by the end of next year while about $67 billion in loans will reset in 2010. The firm estimates that these loans will cost the typical borrower an additional $1,053 per month. Many of these borrowers will end up owing more on their homes than the home is worth."The combined impact of payment shock, negative amortization, declining home prices and restricted availability of mortgage credit may leave many option ARMs' borrowers unwilling to continue paying their mortgage," Group Managing Director and U.S. RMBS group head Huxley Somerville said in a statement.Source: The Associated Press (09/02/2008)

What to do? Let us help you identify some of these options and the short sales that are soon to follow today. Simply fill out our online form at www.Panama-City-Beach-Florida-Condominiums.com and we can email you listing as they hit the market. Be the first to know about the Panama City Beach Condo short sale market before anyone else is aware!

Also visit us online to search the entire Emerald Coast at www.RandBCoastalRealEstate.com today!

Things Getting Back On Track

Loans Workouts ahve new hope. We must take each day at a time, but we continue to track these trends at www.InvestSmarter.com Help us see what is happening on a daily basis and keep us in the loop. The Panama City Beach Condo market continues to have outstanding results to people that are looking at trends and finding units that pay for themselves. It is so important to stay on top of the market and know you numbers!

Alliance Says It Has Increased Loan Workouts Hope

Now, an alliance of lenders under pressure by regulators to curb home foreclosures, announced Wednesday that workouts had increased to 522,000 in the second quarter up from 482,996 in the first.For the first time, more than half of the workouts were contractual changes to subprime loans, Hope Now said. These kinds of modifications are viewed as a better solution than simply extending the payment over a longer period of time.The total number of foreclosures prevented by mortgage servicers since July 2007 has risen to approximately 1.9 million, the alliance said.Source: Reuters News (07/30/2008)

For more information on Real Estate in Panama City Beach or for sales on Panama City Beach Condos please visit www.Panama-City-Beach-Florida-Condominiums.com for more information and always feel free to visit our corporate site with Destin and Panama City Beach listings at www.RandBCoastalRealEstate.com. Let us help you make a solid investment decission in Florida's ever changing real estate market.

Everyone is Behind...Even HELOC payments are late!

Wow!! We know the economy is in a pinch when even the Equity Line payments are falling past due. This is not a good sign for what is to come. Some people unfortunately have been living off of their equity lines and now they are all out of cash. We published an article on www.InvestSmarter.com about the best way to use the equity in your home. Now there are two problems, people have extended themselves too much and the value has gone down. so now what? See below for a few interesting points on the HELOC issue.

Also take some time to read through www.Panama-City-Beach-Florida-Real-Estate.com to see other examples and the disucssion forum of how to work around the issues relating to Panama City Beach and Panama City Florida Real Estate.

Home Equity Delinquencies Hit 11-Year High The number of borrowers more than 30 days behind on their home equity lines of credit hit the highest level seen in more than a decade, reports the American Bankers Association. The first-quarter 2008 data suggests that the economic pain being felt by homeowners is spilling over into a segment of consumer credit that usually is highly resilient in down cycles. That is because, at the risk of losing the roof over their heads, consumers who are financially pinched tend to pay their mortgages and home equity loans before car notes and credit cards, explains Naroff Economic Advisors President Joel Naroff. "That people are now having trouble making payments on home-equity lines is a clear sign of the extent of the pressure on the household budgets," he said in an article published by USA Today. Source: USA Today, Anna Bahney (07/03/08)

So now what do we do? It's time to call in the debt consolidation people and/or find some financial guidance from a professional. Don't let this ruin your credit long term. It can be frustrating, but there are options out there!!!

The condo market is seeing some similar issues and the Panama City Beach Condo market is no different. There is a list of things to consider at www.Panama-City-Beach-Florida-Condominiums.com and take some time to look at comparable properties in the area.

Let us know if we can be of any assistance today!!!